What happened
Actions of Tesla (NASDAQ: TSLA) were hit hard on Wednesday. The stock fell 4.8% at the time the market closed.
The shares probably fell mainly because of a decline in the general market that weighed heavily on growing stocks, such as Tesla. However, the shares may also be inactive because of a rating note. Morgan Stanley analyst Adam Jonas on FordThe new electric Mach-E Mustang won Tesla’s market share in February.
Image source: Getty Images.
And
Jonas estimates that Tesla’s market share in the US EV market dropped from 81% in February 2020 to 69% in February 2021, largely due to market share gains from the new Mustang Mach-E.
Still, this does not mean that Tesla’s electric vehicle sales are going badly; the overall EV market grew 40% year over year during the period, estimates Jonas.
The main reason for the stock’s fall, however, is probably a retraction in the general market on Wednesday. THE S&P 500 and Nasdaq Compound fell 1.3% and 2.7%, respectively. Many growth stocks, like Tesla, have fallen even further.
What now
The decline in Tesla shares adds to a general downward trend for shares in recent weeks. After the stock rose to an all-time high of $ 900.40 earlier this year, the stock has now fallen 7% YTD, outperforming the 2% decline of the S&P 500.
Investors should expect more volatility from Tesla shares, as growth stocks are usually much more volatile than the general market.
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